Burger King to buy Popeyes for a whopping $1.8 billion

A Burger King sign is seen outside a location in Vienna, Austria.
(Reuters)

Burger King’s parent company is finalizing a deal to purchase Popeyes Louisiana Kitchen for a whopper of a sum.

Restaurant Brands International Inc., which owns Burger King as well as Tim Horton’s, announced on Tuesday that it is acquiring the Popeyes fried-chicken franchise for $1.8 billion.

"Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world,” said Daniel Schwartz, the CEO of Restaurant Brands International, in a statement on the company’s website. "With this transaction, RBI is adding a brand that has a distinctive position within a compelling segment and strong U.S. and international prospects for growth.”

Popeyes Louisiana Kitchens currently operate more than 2,600 restaurants in the United States, but Josh Kobza, chief financial officer of RBI, further explained the company is planning to accelerate its efforts to expand the Popeyes brand, the Associated Press reported.

"We look forward to taking an already very strong brand and accelerating its pace of growth and opening new restaurants in the U.S. and around the world," Schwartz added.

According to the terms of the purchase, Popeyes shareholders stand to earn $79 per share upon the finalization of the deal, or a 19.5 percent premium over Friday’s closing price, Reuters reported.

"I am proud of the superior results the Popeyes team has delivered in recent years; they have served all stakeholders well,” Popeyes Chief Executive Officer Cheryl Bachelder said in a news release. “As Popeyes enters its 45th year, its success reflects the amazing brand entrusted to us by founder Al Copeland, Sr. and the unique high trust partnership that we enjoy with our franchise owners.”

“The result is a transaction that delivers immediate and certain value to the Popeyes shareholders," she added.

Restaurant Brands International currently operates more than 20,000 restaurants in over 100 countries throughout the world.